CCI is the commodity channel index (Commodity Channel Index), it is one of the most complex informative indicators. This oscillating * indicator that helps determine when the asset is overbought or oversold. Product channel index (CCI) helps notice weakening or end the trend and change of its direction. This indicator helps you determine the peaks and troughs in price of an asset, and can serve as a signal to ease or end the trend and change of its direction.
* Oscillators — (in technical analysis) is a class of indicators of technical analysis that characterize overbought or oversold market. They are usually effective at stationary state of the market when the price moves within a relatively narrow corridor "market".
View indicator on the chart.
The formula for the calculation of the CCI indicator:
CCIN = (TP-SMAnTP)/(0.015 * MDn)
n — period of CCI
TP is a typical price: the amount of the high, low, and close prices, divided by 3:
TP = (High Low Close)/3
SMAnTP — simple moving average (Simple Moving Average) typical prices for the calculated period
MDn is the mean deviation (Mean Deviation) for the billing period:
MDN = (| Tp1-SMAnTP1 | ... | Tpn-SMAnTPn |) /n
0.015 is a constant
Lambert suggested using a constant 70 to 0.015 — 80% of CCI values fall in a range between 100 and -100. On quantity of values in the interval between 100 and -100 significantly affects the period of indicator. The shorter the period, the more volatile the indicator and, consequently, lower values remains in the range of +100 -100. Conversely, the longer the period used for the construction of the CCI, the more values remains in the range of +100 -100.
To add and configure the indicator, you must open the settings window.
Period - configure period on which the calculation of the indicator.
Panel - select the location indicator on the chart:
- New panel/the new Panel.
Show value - display the current value of the indicator on the left of the pricing scale.
Scale - if this option is enabled, then the scale will automatically be calculated based on the minimum and maximum values of the indicator, the indicator for that would fit on the chart.
Color - color tuning indicator.
Visual type - visual indicator display on the chart:
- Up arrow
- Down arrow
- Axis label
Line style - customize display line:
Width - adjust line thickness indicator.
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